Spot XRP ETFs from Grayscale, Canary, Franklin, and Bitwise are increasingly serving as collateral in multi-billion dollar repo agreements, signaling deeper institutional integration.
XRP ETFs are now used as collateral in repo agreements, signaling increasing integration into traditional financial infrastructure.
Four US spot XRP ETFs have been utilized as collateral in repurchase agreements by a Schwab money market fund, marking a 20-fold increase in usage since May. While the $8.32 million total remains small relative to the $3.99 billion in repo agreements, the integration signals that XRP products are evolving into financeable securities within traditional funding infrastructure.
No. Schwab did not purchase the ETFs directly. Instead, broker-dealers used the XRP ETF shares as collateral to secure cash loans through repurchase agreements held by the Schwab Prime Advantage Money Fund.